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Pro-Poor Growth, Poverty and Inequality in Rural Vietnam

Author

Listed:
  • Woojin Kang

    (Economics, School of Social Sciences, University of Manchester, UK)

  • Katsushi S. Imai

    (Economics, School of Social Sciences, University of Manchester (UK) and RIEB, Kobe University (Japan))

Abstract

This study explores the effects of Vietnam's transition on the welfare of different ethnic groups in rural Vietnam. It draws on three rounds of household surveys, VHLSS 2002, 2004 and 2006. It is first observed that the pace of poverty reduction for minorities surpassed the majority over the period 2002 to 2006, although poor people were still concentrated in the minority groups. Secondly, the disparity of living standards has been widening. In particular, inequality in both the majority and minority increased over the periods. Thirdly, the study shows that the pure effect of economic growth on poverty is estimated to have been greater if inequality remained constant. It is noted that the impacts of economic growth vary depending on which ethnic group a household belongs to. Finally, it is also confirmed from regression decompositions of within inequality that the main driver of inequality is not identical among different ethnic groups. Given the diversity across ethnic groups, we can conclude that the governmental policy aiming at equal access to infrastructure and more equal distribution of assets, such as land, for ethnic minority groups would lead to more equal distribution of consumption and poverty reduction of those groups. Also, consideration of local needs of each ethnic minority group would be necessary in designing and implementing public policies given the heterogeneous socio-economic circumstances surrounding each ethnic minority group.

Suggested Citation

  • Woojin Kang & Katsushi S. Imai, 2010. "Pro-Poor Growth, Poverty and Inequality in Rural Vietnam," Discussion Paper Series DP2010-18, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:dp2010-18
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    File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2010-18.pdf
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    References listed on IDEAS

    as
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    3. Amy Y.C. Liu, 2001. "Gender wage gap in transistion in Vietnam," International and Development Economics Working Papers idec01-3, International and Development Economics.
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    8. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, pages 261-287.
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    Citations

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    Cited by:

    1. Quang Tran, Tuyen & Hong Nguyen, Son & Van Vu, Huong & Quoc Nguyen, Viet, 2014. "Determinants of poverty among ethnic minorities in the Northwest region, Vietnam," MPRA Paper 59144, University Library of Munich, Germany, revised 01 Oct 2014.
    2. Katsushi S. Imai & Bilal Malaeb, 2016. "Asia's Rural-urban Disparity in the Context of Growing Inequality," Discussion Paper Series DP2016-29, Research Institute for Economics & Business Administration, Kobe University.
    3. Domenico Rossignoli, 2015. "Too many and too much? Special-interest groups and inequality at the turn of the century," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 130(3), pages 337-366.
    4. Adeniran, Adedeji & Uneze, Eberechukwu, 2015. "Explaining Sectoral and Spatial Variations in Growth Pro-poorness in Nigeria," MPRA Paper 82406, University Library of Munich, Germany.

    More about this item

    Keywords

    Vietnam; Ethnic minority; Growth; Poverty; Inequality; Decomposition;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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